Disney Ups Investment in UTV

BURBANK/MUMBAI, February
19: The Walt Disney Company has lifted its stake in the Indian media company
UTV Software Communications from 13.7 percent to 32.1 percent for about $200
million.

Disney acquired the UTV
stake initially in 2006 when it also took control of UTV’s Indian kids’ channel
Hungama TV. “We are pleased with our initial investment in UTV, which has
strong local brands and media properties that provide complementary growth
platforms to Disney’s existing branded efforts,” said Andy Bird, the chairman
of Walt Disney International. “The UTV management team is proven and
well-respected, and we look forward to continuing to work with them.”

Ronnie Screwvala, the
chairman and group CEO of UTV, added: “This partnership across movies, TV
content, interactive games and broadcasting endorses our leadership in India
and Southeast Asia and propels our already growing global story. Over the last
year we have learned to work well together, and the speed at which this
collaborative deal was put together is testament to the strong working relationship
we have built.”

Screwvala and certain
entities with which he is affiliated will be increasing their shareholding in
UTV to 32.1 percent through issue of warrants. Disney’s investment will be made
through a preferential allotment of new UTV shares. In addition, Disney will
make an open tender offer to the UTV shareholders.

Concurrently with its UTV
investment, Disney will invest approximately $30 million for a 15-percent stake
in UTV Global Broadcasting Limited (UGBL). UGBL has launched two youth entertainment
channels under the Bindass brand and The World Movie channel, and is about to
launch the UTV Hindi Movies channel. UTV will also invest $60 million in UGBL
for a 75-percent stake.

—By Mansha Daswani